European government bonds moved lower alongside their US counterparts, with investors positioning ahead of Federal Reserve Chair Kevin Warsh's scheduled speech at Jackson Hole on Friday. The yield on the German 10-year Bund rose 2 basis points to 3.25%, while the US 10-year Treasury yield climbed 1 basis point to 4.65%. UK gilts outperformed the broader market, with the 10-year yield holding steady at 5.03%.

Adding to the cautious tone in the region, French presidential candidates are set to address business leaders on Thursday evening to outline their respective policy platforms. Market participants are also turning their attention to the flash August CPI estimates for France and Spain due on Friday, with forecasts pointing to an acceleration in inflation for both economies.

In terms of market action, the German 10-year yield increased by 2 basis points to 3.25%, while German bond futures slipped 19 ticks to 123.92%. Elsewhere, the Italian 10-year yield rose 1 basis point to 4.07%, leaving the spread over German Bunds stable at 82 basis points. The French 10-year yield also moved 1 basis point higher to 4.10%, while the 10-year UK gilt yield remained unchanged at 5.03%.